Foreign aid, growth and poverty: A policy framework for Niger

Emmanuel Pinto Moreira, Nihal Bayraktar

Research output: Contribution to journalArticle

9 Citations (Scopus)

Abstract

This paper extends the dynamic macroeconomic framework developed by Agénor et al. [Agénor, P. -R., Bayraktar, N., & Aynaoui, K. E. (2006, July). Roads out of Poverty? Assessing the Links between Aid, Public Capital, Growth, and Poverty Reduction. World Bank, Revised.]. As in the original model, linkages between foreign aid, public investment (education, infrastructure, and health) and growth are explicitly captured, but this time in a fixed nominal exchange rate regime. Although the nominal exchange rate is fixed, the relative price of domestic goods is endogenous, thereby allowing for potential Dutch disease effects associated with increases in aid. The impact of policy shocks on poverty is assessed by using partial growth elasticities. A policy experiment of increasing foreign aid illustrates the dynamic trade-offs between growth and poverty reduction in Niger.

Original languageEnglish (US)
Pages (from-to)523-539
Number of pages17
JournalJournal of Policy Modeling
Volume30
Issue number3
DOIs
StatePublished - May 1 2008

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Poverty
Foreign aid
Niger
Poverty reduction
Nominal exchange rate
Relative prices
Trade-offs
Macroeconomic dynamics
Linkage
Education
World Bank
Public capital
Roads
Elasticity
Capital growth
Public investment
Experiment
Dutch disease
Health
Exchange rate regimes

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics

Cite this

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Foreign aid, growth and poverty : A policy framework for Niger. / Pinto Moreira, Emmanuel; Bayraktar, Nihal.

In: Journal of Policy Modeling, Vol. 30, No. 3, 01.05.2008, p. 523-539.

Research output: Contribution to journalArticle

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